In 2007, Gail Judd received the following dividends from

Benefit Life Insurance Co., on Gail’s life insurance policy (Total dividends received have not yet exceeded accumulated premiums paid)

$100

Safe National Bank, on bank’s common stock

300

Roe Mfg. Corp., a Delaware corporation, on preferred stock

500

What amount of dividend income should Gail report in her 2007 income tax return?

  1. $900
  2. $800
  3. $500
  4. $300